History

A Brief Kokua History

In 1970, a group of Honolulu residents who
wanted access to quality, minimally processed, natural foods began
exploring the idea of starting a co-op. [ Co-ops are traditionally
created to empower a group of people to have greater economic
freedom and to improve their quality of life. The users or "owners"
of the co-op are responsible for overseeing the governance and
operation of the co-op.] By the end of 1970, these people had
drafted the articles of incorporation creating a not-for-profit,
consumer cooperative - Kokua Country Foods, Inc.

In February of 1971, the new corporation opened a retail natural
foods store called Kokua Market. The store nearly closed in 1972
due to a lengthy dockworker strike that made it difficult to obtain
shipments of groceries. The original bylaws of the co-op required
that an owner must volunteer to a work shift in order to be able to
purchase items at the store. Unfortunately, many people took
advantage of the fact that there was no system in place to verify
that an individual had actually worked in the store and was
entitled to shop. This led to the implementation of an ownership
identification card that was validated when an owner completed a
volunteer work shift.

During the first two years of operation, the revenue of the store
was not able to support the amount of rent being charged to the
co-op and the board of directors decided to find another location
with more affordable rent. Kokua was able to move to a 1,000 square
foot site on Isenberg St. at a lower rent, in an area with a larger
potential market base. The new Isenberg St. store began to attract
new owners and the product lines were expanded. This sales growth
continued through 1978, at which time the store took over an
adjacent space, removed the dividing wall, and further expanded
product lines. Sales continued to grow at a rapid pace.

In 1981, through the efforts of Kokua's General Manager and Board
of Directors, the Hawai'i State Legislature passed a bill creating
a Consumer Cooperative Association Corporate Charter, that allowed
co-ops to sell owner shares without a securities permit. Kokua then
reorganized under this new charter and implemented an owner share
program. Under the new structure, people wanting to become owners
of Kokua must purchase one share of stock. The par value of the
share was set at $150 and could be sold back to the corporation at
any time. A package of benefits for owners only was created,
including: better prices; auto insurance at group rates; discounts
at other area businesses; movie tickets at the group discount rate;
a vote in the co-op Board of Directors election; and various other
benefits. The original volunteer shift requirement was dropped,
however, owners who work a volunteer shift receive discounts on
store purchases (currently 15%).

The new owner share system began to provide capital that the co-op
saved for future asset investment. By 1983 Kokua had outgrown the
Isenberg St. location and needed to actively pursue an expansion. A
search committee was formed to begin the process of finding a
suitable new location. The committee determined that Kokua needed a
store in the University area with ample parking, good visibility,
and 3,000-4,000 square feet of retail space. Due to the high cost
of real estate in Honolulu and the limited availability of this
type of storefront, the search process took nearly ten years!

In 1992, the present location at 2643 S. King Street was secured.
This site met the criteria of the search committee in that it was
located in the University area and provided ample parking, but only
allowed for 2,340 square feet of retail space. To increase the
store size, the board planned to build an additional 1,000-1,5000
square foot of retail space, prior to occupying the building.
However, it would be 15 years before this planned expansion could
actually take place. A small addition of storage space was added in
1995, and the entire layout of the store was changed to best make
use of the existing footage. In February 2007, after a long and
arduous process, Kokua finally expanded its retail space to its
current 4,400 square feet. The grand reopening of the expanded
store was on February 17, 2007.

With the grand reopening, Kokua Market opened its long-awaited
deli, which sells freshly-made hot and cold items. All dishes are
made with mostly-organic ingredients from our market, and the menu
includes raw, vegan, macrobiotic and (antibiotic- and hormone-free)
meat selections. In addition to the hot and cold bars, the deli
prepares grab-and-go items such as sandwiches, salads, and
desserts, along with daily soups. The deli also sells freshly-baked
oatcakes (chocolate chip, date, cranberry-orange and ginger) and
delicious breads.

Kokua continues to be unique in the local business community in
that we are owned by our customers; the return on investment in the
business is directly related to the volume of business which the
owner conducts with the store; each owner has the same number of
votes (one) in the annual Board of Directors election. We are the
only natural foods cooperative in the state of Hawaii. Our products
are quality, minimally processed, natural foods with a strong
emphasis on locally grown and organically grown foods. We are an
equal opportunity employer with a staff of 40+. Our board directors
are elected to three-year terms. The board terms are staggered to
maintain continuity and the board consists of nine owners. We
currently have an owner database of over 3,500 people in our
community. Our owners reflect the wonderfully diverse culture of
Hawai'i and the greater Honolulu area.